Plastic Omnium // 2021 Universal Registration Document

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RISK FACTORS AND MANAGEMENT Main risk factors

2.1

MAIN RISK FACTORS

Compagnie Plastic Omnium SE has reviewed the risks that could have a material adverse effect on its business, financial position, results or reputation. These risks have been assessed based on the probability of occurrence and their impact (after taking into account the mitigation measures implemented by Compagnie Plastic Omnium SE). In accordance Risk categories Importance

with regulations, only those risks that are both significant and specific to Compagnie Plastic Omnium SE are described below. The table below classifies these risks by category and indicates their importance (high or

moderate) based on their assessment.

Risk factors

Non-financial risk

High

Pandemic

Operational risks

High

Shortage of raw materials or components

High

Automotive programs

High

Quality of products and services sold YES

Moderate

Health, Safety and Environment

YES

Moderate

Information Technology

YES

High

Impact of climate change on the business model

YES

Strategic risks

High

External growth transactions

High

Customers

Credit and/or Counterparty risks

Moderate

Suppliers

YES

Market risks

High

Commodity prices

Moderate

Competition law

YES

Legal risks

Moderate

Intellectual property

OPERATIONAL RISKS

impact on its results and cash flow. These plans are based in particular on the partial unemployment schemes that exist in most of the countries where the Group operates and on the non-renewal of temporary employees’ contracts. In addition, the Group has historically implemented a strategy aimed at ensuring, even in these exceptional situations, the liquidity to meet its commitments to third parties. This strategy is based on the implementation of medium-term financing both through private placements and through confirmed bank credit lines, without covenants with leading banking institutions.

PANDEMIC RISK Identification of risk

Compagnie Plastic Omnium SE is exposed to the risk of a pandemic that could occur at country level or on a larger scale, either regionally or globally. In an extreme situation such as that experienced in the first half of 2020, initially in China and then in the rest of the world, Compagnie Plastic Omnium SE’s business could be suddenly interrupted in many plants. These interruptions would be the consequence of the shutdown of production in customer plants, either due to closures imposed by the local health situation, or constrained by problems sourcing components from suppliers operating in a region affected by a local pandemic. A pandemic can also cause a significant drop in demand in the automotive market, resulting in a decline in business for carmakers and equipment manufacturers. These stoppages or slowdowns may have a significant impact on Compagnie Plastic Omnium SE’s revenue, results and cash position.

RISK OF SHORTAGE OF RAW MATERIALS OR COMPONENTS Identification of risk

The global automotive industry may be impacted by a long-term shortage of certain raw materials or components that are widely used for the production of sub-assemblies required for vehicle assembly by carmakers. This shortage, like that affecting semiconductors from the second quarter of 2021 , may lead to a significant and lasting decline in the activity of carmakers on a large number of vehicle models, and consequently, in the activity of equipment manufacturers. This decline in activity may have a significant impact on Compagnie Plastic Omnium SE’s revenue, results and cash position.

Risk management

Faced with this type of situation, the Group is able to immediately implement significant expenditure reduction plans in order to limit the

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PLASTIC OMNIUM UNIVERSAL REGISTRATION DOCUMENT 2021